Iran Feature: The Squeeze of Ahmadinejad's Subsidy Cuts (Baji)
Wednesday, June 8, 2011 at 9:03
Owners of industrial and agricultural enterprises who initially welcomed Iranian President Mahmoud Ahmadinejad's plan to reduce subsidies by lifting the price-support system for basic goods have now become its chief critics.
Six months after the controversial plan took effect, these producers are still awaiting the promised financial support for their companies and worry that, with the sharp rise in fuel prices, they will not be able to stay afloat.
"What do people think? That we make so much profit that despite astronomical cost increases we can still produce?" asked one food producer in exasperation, who spoke to IPS on condition of anonymity. "The reality is that sectors of production can't continue and are reducing their production, if not being shut down altogether."